ISG Share Discussion Threads

[eastbourne1982] 11/12/2015 23:11

Stuck these on my radar about a week ago with the intention of buying around £1, that price is not what I think the business is worth however that is where I thought the price was heading, until today of course, as someone who is not a holder I think the offer is pretty derisory and on the face of it I reckon most holders would be losing money on anything much below £2, just a hunch of course.

With the cash position and business on offer I don't think holders should be looking much below £2.50.

[exbroker] 11/12/2015 20:30

Cathexis have put themselves in a strong position. If they buy the company for say 170, the level that the fund raise was done in March (at a very big discount and at the insistence of the banks) they will have a decent long term business. If they get out bid then they have turned a loss making position into a profit. Heads they win tails they don’t loose! The only question here is what price will the instuitional shareholders take for their stock, I suspect 170 or there about. I have purchased stock today for the first time on the hope of the above scenario.

[lgw500] 11/12/2015 17:22

In fairness to Cathexis, we can hope that we will not have to think about this management for too much longer.....

[qs99] 11/12/2015 16:48

hopefully this will flush out another bidder.... no way IMO this is worth £1.43....fact share price has moved to within a penny of offer price suggests IMO we will see more action next week....never know management may make an offer...?!

[bouleversee] 11/12/2015 16:47

Seems strange to offer at l43 when they have paid at least 170 in the past. Perhaps they are just trying to drive the price back to what they paid and know the offer won't be accepted, at which point they will sell out and get their money back, but would that work?

[nw99] 11/12/2015 15:05

Cathexis' offer is unsolicited and totally inadequate. Disappointing trading conditions in our UK Construction divisions aside, it fails to reflect the strong trading conditions and outlook for the rest of our business. As such the Board urges ISG shareholders to reject this offer once made."

[qs99] 11/12/2015 14:03

agreed on all...

[lgw500] 11/12/2015 13:52

The offer is not mandatory. One would assume that Cathexis is lobbying a trade buyer or buy out fund to take a shot at this at a price of £2. A trade buyer with a strong management that is capable of accurate contract reviews would be laughing all the way to the bank at £2.

[bouleversee] 11/12/2015 12:38

I doubt that the Fin. ~Dir. who bought a chunk at 219p very recently will be too keen on accepting. I certainly won't, having bought at 170p in March and 214p in Sept.

Am I right in thinking that Cathexis does not yet own enough to make an offer mandatory?

[qs99] 11/12/2015 10:17

I agree, management IMO couldn't run the proverbial, so they may have a team lined up to run this....IMO given construction issues are RNS'd as being over by Dec 15, this is a cheeky offer looking into the future with a massive order book and underlying (no construction) decent profits/business and cash in business.....DYOR and IMO but NEDs need to do their job and get a proper price!

[lgw500] 11/12/2015 09:54

There are some chunky institutional shareholders which will surely have a thing to say to the current management prior to its departure later today.

[nw99] 11/12/2015 09:48

A lot of good size buying now

[tuscan4] 11/12/2015 09:26

Presumably ISG are talking this minute with their main rivals, particularly Morgan Sindall , to come in as a White Knight. Any of the four main players in the Fit-Out market would view this as a golden opportunity to acquire ISG at under £100m. Lets not exaggerate the problems in the Construction division. This offer is unlikely to succeed and Cathexis can be defeated even with their 30%. I have defeated a similar bid two years ago and expect to do the same here.

[oregano] 11/12/2015 09:22

it is an opening salvo. management have no credibility but i am sure can talk them up to £1.70. they are trying to put the frighteners up shareholders with the de-listing chat. no-one wants to end up as a minority shareholder.

Management look like prats for not accepting the June offer which presumably was >£2.

[grahamburn] 11/12/2015 09:21

It is a low-ball offer. However, as Ed 123 says above Cathexis may simply be trying to flush out another buyer for a quick exit. On the other hand, with a 29% holding already Cathexis hold the whip hand whatever happens.

They could simply hoover up the company at 143p and look forward to a medium term capital gain once the company has been stabilised. Alternatively, if another buyer comes along at, say, 170p they could simply convert their holding into cash. Without looking, not sure what Cathexis has paid for their holdings along the way, but in the latter scenario it may not be about making a profit for itself, but rather simply recycling the cash.

Either way, no one other than Cathexis can determine the end game.

[qs99] 11/12/2015 08:56

hostile bid, interesting....not sure £1.43 is the right price though! Let's see.

[salpara111] 11/12/2015 08:53

As someone who has had this on my watch list for about 6 months and very nearly invested after the update 3 months ago but mercifully didn't, the fundamental problem now is that even if their next update says that all is well how can anyone believe them which is why I do feel that the CEO and FD have to go in order to restore credibility.

[ed 123] 11/12/2015 08:49

Perhaps Cathexis want to get out? Their low bid may encourage a more serious offer.

If Cathexis end up winning at 143p, I'd expect them to dump the current management, put in their own and aim to refloat in a few years.

The danger for holders is that the bid fails and no new party emerges.

The (pre-bid) falling share price implies a lack of confidence in the trading update of 1 December. That is to say, more bad news is expected.

I'm just watching for now.

[edmundshaw] 11/12/2015 08:32

I don't get it. What is the point of an offer no one in their right mind will accept?

Not a holder, but if I were I wouldn't be impressed...

[salpara111] 11/12/2015 08:27

Anyone on this board who is a holder needs to get their voting rights sorted especially if their shares are held in a nominee account.
This is not a done deal, if you guys don't want it then get your vote and use it!

[red army] 11/12/2015 08:25

It does make you wonder whats behind these announcements sometimes prior to a bid ;-0

[red army] 11/12/2015 08:23

Surely something can be done to reject this offer,

[tsmith2] 11/12/2015 08:22

Rejecting - share price fall?

[nw99] 11/12/2015 08:22

£2 a few weeks ago day light robbery offer